Say Goodbye to your Standard Variable Rate (SVR)
Whilst many homeowners choose to re-mortgage as they reach the end of their current deal, many still opt for the flexibility of their lender’s Standard Variable Rate (SVR). Around 3.2 million residential mortgage accounts in the UK are on a SVR scheme – that’s a market size of around £280 billion*.
With the Base Rate at a standstill, many borrowers might just stick with the flexibility of their SVR, paying an average interest rate of 4.92%**. But with new mortgage rates at an all-time low, this does mean that many of these borrowers are missing out on the opportunity to save money, or pay off their mortgage early by re-mortgaging.
Reasons for your re-mortgage
· Put money back in your pockets – a new mortgage deal could reduce monthly payments.
· Help shorten your mortgage term – if you continue paying the same monthly payment as you are currently these overpayments could pay your mortgage off sooner.
· Switch form interest only to repayment- if you are a homeowner with an interest only mortgage, you could move a portion or all of your mortgage to repayment basis, with the added benefit of paying off some of or all of the capital.
· Free up some cash – re-mortgaging could free up equity to pay for things like home improvements.
· Peace of mind – switching to a fixed rate lets you know exactly what your monthly payments will be and help you to plan for the future.
For more help and advice on Mortgages please do not hesitate to contact us @ Hoskin Mortgages.